2026 Real Estate Forecast

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Posted on January 8, 2026 by Alumni

Alumni

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Modest Rate Impact, Alabama Stability

The University of South Alabama launched its real estate major this fall in the Mitchell College of Business and hired Dr. Grayson Glaze, a 30-plus-year veteran of the industry, to lead its program. Glaze makes these three predictions:

Lower Interest Rates Will Have Modest Impact

Lower interest rates will have a modest, rather than transformative, impact on the Gulf Coast market. Even if the Federal Reserve continues to drop rates, that will not be enough to immediately offset the housing price appreciation of the past few years or trigger a massive surge in sales.

Alabama Housing Markets Will Stay Steady

Alabama maintains one of the most affordable housing markets in the nation, with median prices acting as a powerful buffer against national market volatility. Continued in-migration and a stable employment base, particularly along the industrial and logistics corridors, will keep demand consistent.

Commercial Real Estate Will Heat Up

Commercial real estate in Mobile and Baldwin counties is poised for strategic and modest acceleration, effectively capitalizing on the national logistics market’s recent inflection point. Industrial space, anchored by the Port of Mobile’s activity and robust manufacturing supply chain needs, will remain the most dominant asset class. 

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